The pensioners are coming to Aylesbury!

Direct Line for Business has just released the results of some interesting research that reveals 32% of people aged 45 - 64 who have a pension would consider using all or some of their funds to purchase a buy to let property as an alternative to a traditional pension income funded by an annuity.
With the pension regulations change in April giving people access to some or all of their pension pots this is likely to mean an increased number of buyers in the property market (as mentioned in previous posts). We will have to wait and see if this translates in to stronger prices but this is likely as the market(in terms of volume) is still relatively small compared to 2006/2007.Quite small numbers of new buyers could make a substantial impact.
Therefore it makes sense to buy now, rather than wait, if you have funds available. But will the waiting game pay off?
Well it just might- if the election is inconclusive, rates go up or the European economy starts to bite us.
The research also shows that the main reason for considering the purchase of buy to let property is regular income (43%), but in 17% of cases it is capital appreciation. No surprise in the desire for income but the latter is more revealing as it indicates that these buyers are most likely to buy just one property rather than attempt to build up a portfolio. To build a portfolio the capital increase is desirable to generate greater equity which can be reinvested to make further purchases.When I first came in to the business the odd investor you came across was likely to be a wealthy individual with multiple properties, very different today. Most of my landlords are like you and me , trying to maximise returns from income by investing in property rather than trying to make a living from it.
Whatever your view the market remains busy and prices strong, great rents are being achieved for good property in good condition in good locations as always and void periods are minimal.
About to take the plunge and buy your first investment or adding to an existing portfolio? Get in touch and I will be happy to talk you though what is going on at the coal face.
01296 398555